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Facebook Libra raises 'very serious concerns,' says Treasury Secretary Steven Mnuchin

He isn't comfortable with the company launching its own cryptocurrency.

Oscar Gonzalez Former staff reporter
Oscar Gonzalez is a Texas native who covered video games, conspiracy theories, misinformation and cryptocurrency.
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Treasury Secretary Steven Mnuchin Holds On Briefing At White House On Cryptocurrency

Treasury Secretary Steven Mnuchin says the department has concerns over Facebook Libra.

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Since it was announced in June, Facebook has received pushback for its Libra cryptocurrency from government officials in both the US and Europe. On Monday, Treasury Secretary Steven Mnuchin added his concerns and questioned what's being done to curb illegal activity involving cryptocurrency

"The Treasury Department has expressed very serious concerns that Libra could be misused by money launderers and terrorist financiers," Mnuchin said during a press briefing Monday. "Cryptocurrency such as Bitcoin have been exploited to support billions of dollars of illicit activity. This is indeed a national security issue."

Mnuchin said one of the reasons for his comments is due to the attention Libra has received from the public since it was announced. He wanted to inform the public that the Treasury Department is investigating illicit activities involving cryptocurrency. 

Also on Monday, David Marcus, head of Facebook's financial services subsidiary for Libra called Calibra, said the social media company will not offer Libra until it receives the proper approvals. 

Marcus is set to speak in a hearing at the Senate Committee on Banking, Housing and Urban Affairs on Tuesday. 

Facebook didn't have a comment on the Secretary's remarks. 

Mnuchin said one of the reasons for his comments is due to the attention Libra has received from the public since it was announced. He wanted to inform the public that the Treasury Department is investigating illicit activities involving cryptocurrency. 

Also on Monday, David Marcus, head of Facebook's financial services subsidiary for Libra called Calibra, said the social media company will not offer Libra until it receives the proper approvals. 

Marcus is set to speak in a hearing at the Senate Committee on Banking, Housing and Urban Affairs on Tuesday. 

Facebook didn't have a comment on the Secretary's remarks. 

The Libra Association, which is the group of organization that will govern and act as the network for the cryptocurrency, says it understands that policymakers must consider the applications of blockchain and how it fits in financial system oversight.

"Mnuchin's comments today are completely in line with the types of issues the Libra Association is vocally and proactively working on with our 28 founding members," Dante Disparte, head of policy and communications for the Libra Association, said in an email statement Monday. "No financial ecosystem, including our current system, is immune to bad actors and we fully expect legal authorities to prosecute bad actors on the Libra Blockchain, as they would on any other blockchain or financial system, for illicit activities. The Association will also develop monitoring programs and work with vendors that have expertise in identifying illicit activity on public blockchains." 

Originally published on July 15.
Update, July 16: Adds comment from Libra Association.